An energy boss has called for a price cap on North Sea oil and gas producers, which he said could save British households £1,000 a month as households buckle under the strain of rising energy bills.

MailOnline spoke to Dale Vince (60), founder and owner of Ecotricity, a green energy company, about the importance of the Forest Green Rovers vegan football team. He said that it was the best way to combat spiraling energy costs.

Vince stated that the “exceptional” cost of living would require a government response similar to the Covid-19 pandemic, which helped families get through winter. Hundreds of thousands are now facing poverty. 

The UK’s gas prices have quadrupled in June, putting bills at an all-time high for Brits who struggle to keep up with rising prices.

Ofgem announced yesterday the energy price cap for an average household would increase to £3,549 a year from October.

Vince stated that in order to solve the crisis, there should be a limit on oil and gas producer profits from the UK North Sea. It is similar to what happens with energy retailers whose profits are captialized at two percent. 

Dale Vince, 60, founder of green energy company Ecotricity said the government needed to take urgent action to tackle energy bills, and that the price cap was the best way to help out families

Dale Vince (60), founder of Ecotricity, a green energy company, said that government must take immediate action to address energy bills and that price caps are the best way for families to be helped. 

His comments come as Harbour Energy, the biggest North Sea oil and gas producer, saw its profits increase by twentyfold this year from £102 million to an astonishing £1.3 billion as energy prices soar. 

MailOnline was informed by Mr Vince that there is a price limit in place [energy] retail sales to homes, we don’t have one on wholesale. We’ve done half a job, which causes lopsided problems.  

‘It’s simple in retail: energy companies are allowed to make two per cent profit, set by Ofgem. Wholesale can make up two percent more than that.

‘Currently we let those guys sell it to us at global commodity prices set by the international market – that doesn’t make any sense to me.

“The government attempted a last-ditch, half-hearted tax on profit windfalls that would make little difference. 

‘We pay £1,800 for gas – that’s half of our energy bills. In broad terms, take that gas half away from bills and you could be saving £1,000 per household.

The Forest Green Rovers owner said the plan would slash energy bills without spending public money

Forest Green Rovers owners claimed that the plan would reduce energy bills and not require public spending. 

Harbour Energy, the biggest North Sea oil and gas producer, saw its profits increase by twentyfold this year from £102 million to an astonishing £1.3 billion as energy prices soar

Harbour Energy, the biggest North Sea oil and gas producer, saw its profits increase by twentyfold this year from £102 million to an astonishing £1.3 billion as energy prices soar

“Put the issue in, you will solve it.” 

‘It’s not just homes being affected, it’s small businesses – they can’t afford to pay their bills

“The government should see it as the pandemic — an exceptional event.”

Mr Vince estimated the amount saved by British households if the price cap was brought in would be £28 billion in total.

Who is Dale Vince 

Dale Vince is 60 and founder of the renewable company Ecotricity. He has also been a self-made multimillionaire.

Vince, once an impoverished New Age traveler and entrepreneur, first attracted attention when he was awarded a fight to construct his first windturbine in Gloucestershire. This battle took place in 1996.  

Estimated to be worth £100 million, he is the owner of League One football team Forest Green Rovers 

It was the first team to play vegan football in 2017. 

In April, he said he was going to sell Ecotricity so that it could be used to pay for a campaign during the next election. This election he described as ‘the most significant of my entire life’.

While Vince hasn’t yet declared his support for any political party but has given to Labour as well as the Greens previously

He is estimated to have made £100 million in the past 26 years and is expected to double that from the sale of Ecotricity  

He said that gas is the most expensive energy source and a profit cap on the North Sea would be a significant impact.

He said: ‘In terms of solving the problem without throwing public money at it, it’s the biggest single thing bar none.

‘You don’t need a tax for it and it could take £30 billion off energy bills.’

‘A lot of people can’t pay for it, so the solutions are either public money or changing the system.

40% of our electricity is generated from gas. [gas prices]You can set the price to buy nuclear, renewables and coal – or any other type of energy you want.

“That would reduce half of the electricity and gas bill.

The oil and gas industry has been strongly against increased taxes. However, the government has decided to introduce windfall taxes in May to collect money from the industry to support the boom.

Liz Truss is likely to be Britain’s next Prime Minster. She has stated repeatedly that she would like to reduce taxes and’maximise’ oil and gas production. However, output in North Sea was at its peak 20 years ago. 

Partly, the Russian invasion in Ukraine caused a spike in energy prices and boosted profits at energy companies.

Households, meanwhile, face a potentially disastrous winter as average gas and electricity bills hit £3,549. 

There are concerns they could rise to over £5,000 next year

Boris Johnson yesterday stated that his successor would ‘plainly’ have to aid families in paying bills for this winter.

He stated that cash handouts would be:

He added: ‘What I don’t think what we should be doing is capping things for absolutely everybody, the richest households in the country.  

“This will last for a few more months before it ends, then it will end over the winter.

And it will be tough – and I’d be very clear about that – but in the end, we are also putting in the measures we need to ensure that we have the energy independence to get through this.’

Dale Vince: This is my plan to combat the soaring energy prices 

1) To protect the people from such outrageously high energy bills, it is imperative that government intervenes. It will cost some £40 billion to do it this winter, just 10 per cent of pandemic spending. It is imperative that the government recognizes the unique nature of the energy price crises and increases borrowing in order to safeguard millions from its consequences. False economy will result

2) Limit North Sea gas exports and price cap North Sea gas. The price should be fixed at the exact same 2 percent margin as OFGEM permits energy retailers. The North Sea is where half of our natural gas comes from (or could come from), and this will eliminate the problem with price increases. Also, it will prevent windfall profits being made before they are realized – so no windfall tax is required. The government obviously doesn’t want to pay for this.

3. Decouple electricity’s price from gas. Gas, which may provide 40 percent of the energy we use, should not be used to set the prices for the electricity that we produce in Britain. Even more so when global commodity markets set the gas price. It is time to end the link

Start a public campaign that educates people about energy conservation. Changes in the temperature of a boiler’s flow can cut down on consumption by 10% without reducing temperature. To help citizens use less energy, the government must share vital information.

5) A national energy efficiency program is needed urgently beyond this winter. This is a way to reduce maybe 30% of our monthly energy bills. 

6) Free from all restrictions onshore wind or solar, the most efficient and cost-effective form of renewable energy. They don’t need public money, it is a cost-free option that the government can take.

7) A green energy sprint is needed. The current grid has 50 percent of green electricity. We can have 100%. It could all be accomplished in as little as 10 years, or even five, if it is treated as a national crisis.

8) Switch to green grass instead of fossil gas. All the gas that we require can be produced from grass. This would create 160,000 new jobs for rural workers (providing a transitional period for farmers and a huge biodiversity boost). It is possible to keep both the gas appliance and gas grid that we currently have, as long as we change what gas goes into them.

 

 

Source: Twitter/Dale Vince